A government's fiscal deficit is most accurately described as the excess of:
Correct answer: B. Total expenditure over total revenue
- A. Total revenue over total expenditure
- B. Total expenditure over total revenue
- C. Exports over imports of goods
- D. Money supply over currency circulation
Explanation
A fiscal deficit occurs when total government expenditure exceeds total government revenue during a financial year. The gap is financed through borrowing or other financing sources, so it is not the same as a trade deficit.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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